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Entry Mode To International Market Of Mustika Ratu Marketing Essay

2694 words (11 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Mustika Ratu is a successful example of Indonesia local companies that through international markets. Mustika Ratu Products have wide scope, ranging from a variety of cosmetics, until oil telon and Slimming Tea.

During the year 2008, Mustika Ratu recorded a remarkable achievement, where sales increased by 30%, whereas according to the Nielsen survey, the national cosmetics industry grew only 15%. Sales are also supported by exports, which contributed up to 30% of total sales. Mustika Ratu reach international markets through exports. Some countries which currently export destination are Malaysia, Saudi Arabia, Hong Kong, Brunei, Africa, and Middle East. The composition of exports reached 30 percent of total sales. Malaysia is the largest export market Mustika Ratu which controls nearly 50 percent of total exports.

In addition Mustika Ratu has also been selling cosmetic products and herbal medicine to Saudi Arabia, Russia, Eastern Europe, Japan, Canada, Hong Kong and Papua New Guinea. In the next few years, is working to MRAT entering the European market, Australia and America. It has been in the exploration. Apparently, the global crisis is not a barrier for Mustika Ratu for reaching new markets. No wonder, the beauty company’s intention to expand the export market share this year and domestic sales target of Rp 610.1 billion (RM 221.5 million).

After attending a franchise system in the three of cities tour of Malaysia (Langkawi, Genting and Kijal Terengganu), Mustika Ratu penetrated Kuala Lumpur in the spa business by investing directly. Inauguration Taman Sari Royal Heritage Spa and Institute of Education and Training Mooryati Sudibyo was conducted by the Ministry of Women, Family and Community Development of Malaysia, Datuk Seri Shahrizat Jalil.

Mustika Ratu as one of the Spa industry pioneers in Indonesia, is keen to open the opportunity for profit in Malaysia. In addition, the presence of Mustika Ratu Taman Sari Royal Heritage Spa and education and training institutions in Malaysia are expected. Some Malaysian artist and socialite attended the opening took it along with the Ambassador of Indonesia to Malaysia, Tan Sri Da’i Bachtiar, Deputy Human Resources Minister, Datuk Maznah Mazlan, Puteri Indonesia and the media.

Minister Shahrizat Abdul Jalil in his speech said that, the product Mustika Ratu has become a household brand name ‘families Malaysia for a long time. With the opening of Mustika Ratu and Spa Education and Training Institutions is expected to more women of Malaysia will undertake training in the field of beauty, in addition to improving the skills and opportunity to be self-entrepreneurs in the spa business.

Corporate culture are:

Prioritize improving customer satisfaction

Working with cultural familiarity and intimacy

Respect the integrity and high professionalism

Supporting the cooperation and mutual assistance in achieving common goals.

     One of the advantages that characterizes Mustika Ratu advantage is that they create products with natural ingredients that do not have dangerous side effects such as cosmetics, other cosmetics are a lot of use of chemicals. For this characteristic that they remain up to the market / international world to become virtues and advantages they have.

Mustika Ratu penetrated and entered the international market in its own way, without changing the product but by offering distinctive nature of the product itself Mustika Ratu. This keistimewaannya proved capable of making produk-produk/merek-merek compete with others both inside and outside the country.

The specialty products and services is the primacy of Mustika Ratu interesting way consumers. By establishing some herritage spas and other care centers, Mustika Ratu pamper and provide good service to customers so that customers did not need to guess about Mustika Ratu products because they can be asked directly about products and other constraints they have.

Composition of corporate and good management also helps Mustika Ratu in competition with other brands. Not only that, mustika queen raised commissioners and directors who are skilled and experienced in their fields so as to bring Mustika Ratu compete in international markets. The following composition / profile list of commissioners and directors of PT. Mustika Ratu Tbk.

Corporate – BOD and BOC

Board of Commissioners

Haryo Tedjo Baskoro, MBA President Commissioner

Completed higher education majoring in Marketing at National University, Los Angeles, United States in 1992 and in 1999 had completed a Masters degree of Business Administration in the same field at Leicester University, England. His career to give the experience more than 14 years in several business areas, especially the development of property projects and highway infrastructure, among others, Sheraton Mustika Yogyakarta Resort & Spa, Drassindo Tower building, highway lodge Aren – Serpong (BSD City), etc.. Since 1988 until now served as President of the Board of Commissioners.

Prof. DR. FG. Winarno Independent Commissioner

In 1970 earned his doctorate in Food Science from the University of Massachusetts, USA. Year 1982 was appointed as a professor of Food Science and Food Technology in IPB Bogor. Between 2002 and now serves as Commissioner of the Independent Company. Since 1961 until now served as a lecturer, Bogor Agricultural University. 1991 to 1995 served as President of the Codex Commission Alimentarus in Rome, Italy. In 2004 until now the President of the International Dairy Federation’s Indonesia representative. In the year 1996 until now served as President of the Indonesian Flavor and fragrans Association.

Drs. Darodjatun Sanusi, MBA Commissioner

Years of education completed Strata 1971 The Department of Pharmacy at the Bandung Institute of Technology. In 1976 graduated from the Post Graduate Course at the State University of Ghent, Belgium and then in 1991 completed education in Antwerp, Belgium as a Master of Business Administration. Since 2002 served as the Board of Commissioners until now. From 1997 to 2002 served as President Director of PT. Kimia Farma Tbk. Year 1988 to 1998 as President Director of PT. Bio Farma.

Directors Profiles


DR. Hj. BRA. Mooryati Soedibyo, S.S, M. Hum President Director

In 2007 completed Doctoral Program Faculty of Economics Department of Strategic Management University of Indonesia. In 2003 completed Postgraduate Education Studies Program Department of English Linguistics University Eleven March (UNS), Surakarta. Since 1978 until now served as President Director Peseroan. It also served as Director of PT. Center Mustika Ratu, PT. Mustika Princess Hotel, PT. Mustika Ratubuana International, Managing Director Taman Sari Royal Heritage Spa and PT. Mustika Ratu Investama. Served as Vice Chairman of the Assembly of the Republic of Indonesia and the Regional Representative Council of the Special Province of Jakarta in 2004-2009. Year 1992 until now served as the Chairman of Yayasan Puteri Indonesia, Miss Universe franchise holder. In 1999 until now served as General Chairman of Indonesian Spa Association (ASPI). Year 2000 until now served as General Chairman of Indonesia CIDESCO. In June 2003 obtained the grace of Best of The Best Entrepreneur of the Year Award from the International Institution Ernst & Young.

Putri Kuswisnu Wardani, MBA Vice President Director

Completing a Master of Business Administration from National University, Inglewood, California, United States. Served as Vice President Director of the Company since 1991, also held several important positions in various companies in Indonesia. Joined the Company since 1986 as Head of the Department of Promotion and Advertising.

Dewi Nurhandayani, BBA Director

Completing education from The American College for the Applied Arts degree in Graphic and Packaging Design in Los Angeles, United States. Since 1996 until now served as the Director of the Company. In the year 1994 up to 1996 as a Manager in the Company’s product development.

    Arman S Tjitrosoebono, MBA Director

Years of education completed in 1982 at The School of Business – Pacific State University, California, United States in the field of marketing. In 2001 joined the Company as Director of Marketing & Sales, and currently serves as Chief Operations Officer (COO) of the Company. 1997 to 2001 served as Head of Marketing Director of PT. Reckitt Benckiser. Previously he held various positions in Marketing & Sales at some multinasioanal companies.

Zulfikar Lukman, MBA Director

Completed higher education in the Department of Economics at the University of Trisakti and completed a Masters degree of Business & Administration at Monash University, Australia. Year 2008 till now become Corporate Development Director (CDD) of the Company. Year 2003 to 2008 a member of the Audit Committee of the Company. In 2006 served as Corporate Advisor & CFO Kartika Chandra Group. Year 2003 – 2006 served as Managing Director of Victory Jaya Group. Previously served as Manager in several local and foreign banks.



1. Product

PT Mustika Ratu products made from natural materials which are processed selection of modern and hygienic. Mustika Ratu has been certified ISO 9002 and ISO 14001 since 1996 and GMP (Good Manufacturing Product) since 2004, thus giving confidence to consumers on the quality of environmentally friendly products. Along with the more spirit “back to nature”, many people around the world are now increasingly want products made from natural materials and the production process does not damage to the conservation of nature. The company also has long been grown on these principles.

PT Mustika Ratu is a portrait of the evolutionary success of herbal treatment. Herbal become part of modern lifestyle inseparable. Efficacy of herbal medicine is so good for health and beauty care for body, manifested in a variety of products and attractive packaging. Mixed from the diversity of medicinal plants in Indonesia. Herbal no longer had to drink glasses for health care and beautify the body, for example. Rather, it could extract in pill form which is the essence of various types and amount of vegetation.

Medicinal products and traditional cosmetics of Mustika Ratu made from natural ingredients. Almost all the products in accordance Mustika Ratu prescription mixed ancestry, heritage Sultanate of Surakarta, who passed on to the next. But now these products are made by using modern techniques and machines that meet the strict standards of quality and safety. Mustika Ratu is now focusing on the products of traditional herbal medicine and cosmetics, the category of products (both types of product or brand) continues to grow. Mustika Ratu is now producing less than 500 no cosmetics brands. Category consist skin care products, makeup base, decorative makeup, hair care, body care, and others.

We started this business from the field of herbs that have been widespread in businesses such as beauty SPA treatments. Traditional Massage Javanese style, he called Javanese massage services, is the other side of the ancestral heritage. Unmitigated, care packages Taman Sari Royal Heritage Spa that package as franchise sold overseas, to compete with Japanese Shiatshu Massage, Swedish, Thai massage and various other massage models abroad.



Hair Care

Facial Care

Basic Make-up

Body Care

Whitening Series


Jamu Treatment : Hair Care, Facial Care, Body Care, Etc.

Oral Care : Mountwash, Toothpaste

Jamu Treatment for Men

Herbal Drink : Herbal drink tamarind

Slimming tea

There are many more products offered by Mustika Ratu. In its offer all products, Mustika Ratu always provide quality and best service from them for all their customers.

2. Price

Mustika Ratu produces a wide range of beauty and spa products. Mustika Ratu products that vary in price according to the type of product. Mustika Ratu products intended for mature age market with middle until high economic level up to face skin care, makeup base, decorative makeup, hair care, body care. Price of Mustika Ratu product affordable by the people of Indonesia rather than imported products.

3. Promotion

PT. Mustika Ratu is one company that specialized in beauty products. In introducing the company and its products to the public at large, PT. Mustika Ratu using a variety of promotional strategies.

In the year 1978 products Mustika Ratu begin distributed to the stores, through beauty salons asking for an agent. Entering the early 1980s began to expand Mustika Ratu develop the kinds of traditional cosmetics. Community began to recognize and use familiar products, the output of traditional beauty Mustika Ratu, which heavily popularized through articles and beauty consultations in magazines, and through advertising in print and electronic media.

Another promotion strategy was the selection of event sponsorship in Puteri Indonesia. As the main sponsor, then the PT. Mustika Ratu has the right to use the Puteri Indonesia as the product icon (endorser).

Use endorser Puteri Indonesia is one form of integrated marketing communication activities conducted by PT. Mustika Ratu. Endorser is used to communicate to the consumer products, such as the benefits of a product. These benefits are not only functional benefits but also emotional benefits that a campaign strategy that gives more pride to the consumer. Pride will make consumers interested in taking a product and will be more satisfied.

There are several reasons why the PT. Mustika Ratu using Puteri Indonesia to promote its products.

• The first is expected that the icon Puteri Indonesia will affect the product image and company PT Mustika Ratu. Both are expected Puteri Indonesia could become a powerful endorser that attract consumers to buy. Promotional activities carried out by PT. Mustika Ratu has been in use quite effectively Puteri Indonesia.

• Strategies that can be done to the management of PT. Mustika Ratu to improve its promotional strategy for this which uses endorser is the daughter of Indonesia:

1. Making Puteri Indonesia as a star product advertisements Mustika Ratu

2.Meningkatkan promotional activities outside of the selection arena Puteri Indonesia.

3. PT. Mustika Ratu must inform the public that are Puteri Indonesia is ambassadors of PT. Mustika Ratu.

4. Make the most positive image of the Puteri Indonesia

In addition Mustika Ratu customers also held a special gathering for Mustika Ratu loyal customers on a regular basis in other areas in Indonesia. This is done by opening the booths at the beauty. Gathering customer is also intended as a means of accommodating consumers’ input and hope that will be useful for the company and product quality in the future.

4. Place

Products Mustika Ratu is now easy to obtain and occupy top positions in the domestic market and well accepted in overseas markets, like Malaysia, Singapore, Saudi Arabia, Russia, Eastern Europe, Canada, Hongkong and Papua New Guinea .. From this success, the company plans to increase exports and to penetrate international markets.

For this type of Mustika Ratu Spa, some ASEAN countries have adopted the traditional spa business franchise package Java Mustika Ratu, such as Singapore, Brunei, or Thailand. In addition to management fee, he had the chance promote Mustika Ratu medicinal products for spa treatments at all outside the country. He also sent her masseuse labor predicated therapy, or experts who earn great healer.

Specifically for the export market, Mustika Ratu have planning to get new market target in Africa and the Middle East with a strategy to increase sales is to produce new products high demand.

As for the local market, Mustika Ratu will strengthen the sales in the secondary market down. Mustika Ratu will hold a massive campaign in order to seize the queen pasar. Mustika Ratu will raise operational costs, from Rp 153.6 billion to Rp 191.5 billion. The greatest part for promotion.

SWOT Analysis


– Local products

– Price is more affordable

– Easily obtained


– Clinical trials

– Packaging


– Eastern European markets (Russia)

– Youth

– Sponsors of Puteri Indonesia


– Products imported

– Image (that Mustika Ratu products for adult women only)

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